Weekly Digest: How Infectious Coronavirus to Economy?
Summary
- The economic impact of the coronavirus outbreak will increase the fiscal burden of the Indonesian government. The government not only will lose a massive sum of potential revenue but also has to spend tons of money to ease the impact of the outbreak, especially in the tourism sector.
- Indonesian economic growth will likely go down below the expected number at 5.3 percent, comprised in the 2020 state budget. It may hit five percent at most or drop even lower since the virus is infecting the global economy as well.
- The government’s “campaign” to ensure the world that there was no coronavirus case in the country backfired. For example, several airlines scrapped the flights to and from Indonesia, while some foreign investors even pulled out their funding in Indonesia. Saudi Arabian decision to suspend any arrival from other countries, including Indonesia, also showed the kingdom’s lack of trust in the Indonesian government.